Posted on 02/01/2012 6:12:40 AM PST by blam
BILL GROSS: 'We Are Witnessing The Death Of Abundance'
Joe Weisenthal
Febuary 1, 2012
In his latest monthly letter, PIMCO's Bill Gross has a long philosophical-sounding discussion about credit, delevering, and the difficult task facing Bernanke.
The money line is this paragraph at the end:
Where does credit go when it dies? It goes back to where it came from. It delevers, it slows and inhibits economic growth, and it turns economic theory upside down, ultimately challenging the wisdom of policymakers. We’ll all be making this up as we go along for what may seem like an eternity. A 30-50 year virtuous cycle of credit expansion which has produced outsize paranormal returns for financial assets – bonds, stocks, real estate and commodities alike – is now delevering because of excessive “risk” and the “price” of money at the zero-bound. We are witnessing the death of abundance and the borning of austerity, for what may be a long, long time.
(Excerpt) Read more at businessinsider.com ...
I still say that here in the States (United no more), the black market or underground economy will thrive. That’s what kept the USSR going all those years.
Wow, look at that guy...
he’s giving Alan Colmes a huge run for his money in the
“most sepulchral visage” contest.
Pay the people to exist.
keeping interest rates near zero as to minimize interest payments on the deficit
Neither the debt nor the deficit are getting any smaller.
There is definity a growing segment of society that are just like farm animals on the Federal plantation. The only work they do is breed and vote every 2 years, in return they are fed and watered. Like cows.
sepulchral [sɪˈpʌlkrəl] adj
1. suggestive of a tomb; gloomy
2. of or relating to a sepulchre
sepulchrally adv
One option is to kill them. The Left stands ready to exercise that option...
In the past, “redundant” people were sent off to colonize the Hinterlands (Siberia, America, etc). Back then, the colonists were more/less self sufficient. Now, the Hinterlands have all but disappeared. Mexico sends us their people in hopes we will put them on the dole and (eventually) they will be able to re-annex the Southwest.
Ultimately, I think the salvation of the Human race is in colonizing outer space. Unfortunately, I think we are going in the opposite direct. The Left would luv to keep us all here on Earth under their thumb. Outer space is too good an escape route.
Bingo.
Beg to differ. “Our side” believes it is up to an individual to decide if they are going to be productive or not!
sepulchral [sɪˈpʌlkrəl] adj
1. suggestive of a tomb; gloomy
2. of or relating to a sepulchre
sepulchrally adv
Does this mean that Mr. Gross will purchase cheaper ties?
Will he move PIMCO from Newport Beach, CA to Spivey’s Corner, NC?
Remember, Gang, Mr. Gross is lucky if he is correct half the time.
Keep your chins up and keep working.
Besides, God is good.
Neither the debt nor the deficit are getting any smaller.
ONLY IF the politicians get out of the way and stop buying votes with our money. The parasites / takers are at nearly 50% and don’t produce anything. The greens, AGW kooks, and EPA all want us to return to the stone age and will do prevent any development at all anywhere. These are abetted by a communist in the White House.
...and if the stone age is reinvented, blame will be measured by the bullets expended. Just who will get the blame for what we will have become from what shoulda been.
“Pay people..”
That’s what we do now and we don’t like it.
IF we truly want to come back, as it were, we have got to create wealth here and that means manufacturing, mining,drilling, farming,,,the messy industries we are too good for now.
That means having the political will to delete the EPA, to make the business of the US business and to stop pandering to every whiner with a leftist grievance over grocery bags.
This is NOT a call to dumping raw sewerage in rivers or belching smoke into the air without a care. But we do have to recognize that sometimes there are messes created...for the greater good.[hey...it works for them...]
Real economic freedom means that people who make bad choices, or who may have disabilities, or may have bad luck, might possibly end up starving in an alley. Women and children too. Not their fault, sure – but if you own responsibility for your own situation, and if things don’t go your way (for any reason) then you are on your own.
Now, churches and benevolent societies have done great things in the past, and could do great things in the future. But if all the economic parasites in this country of 300 million people had to suddenly depend on either themselves or on the kindness of strangers, then there would be a lot of suffering.
I see two choices:
1) Put a gun to some folks’ heads, forcibly extract their money, and redistribute that wealth.
2) Allow children to starve in the street.
I’m open to other alternatives. But outside of science fiction novels, I really don’t see anyone giving serious thought to other solutions.
The problem with old age is a flawed perspective of the world. Bill Gross thinks the world is as old and stupid as he has become. Aging gracefully is a challenge.
I keep it simpler than that.
My phrase to my liberal pofs acquaintances is “how can you consume if you don’t produce?”
If the Government starts spending over 50% of its revenue on debt service, then you will see the SHTF.
I agree, and the only thing keeping interest rates so low, is that NGO the FED, and of course the Congress and President are forced to go along, because they know the consequences.
If the 10Y treasury ever goes above 5%, it's game over
Define redundant.
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